Benchmark reiterated its Buy rating and $10 price target for Westrock Coffee Co. on Thursday, citing operational improvements at the company's Arkansas facilities.
The rating and target were left unchanged after Westrock reported second-quarter earnings and revenue that fell short of analyst expectations. Benchmark highlighted ongoing capacity utilization at plants in Conway and Little Rock, Arkansas, which has enabled the company to reduce selling cycles and cross-sell new accounts across multiple product lines.
Westrock Coffee's market capitalization stands at approximately $781 million, up 81% over the past six months and 96.6% year-to-date. The company's trailing twelve-month revenue growth reached 38.6%, though capital expenditures remain significant at roughly $30 million annually to support growth initiatives.
Benchmark noted that enhanced plant capacity has allowed Westrock to achieve positive free cash flow earlier than management had anticipated, supporting the firm's bullish outlook despite the recent earnings miss.
